Apollo Tyres Q2 net profit dives 46%.

Apollo Tyres has reported a 46% drop in consolidated net profit at Rs.140.17 crore ($21.7 million) for Q2, which ended September 30. The company said it was impacted by higher raw material costs. In comparison, the Indian tyre maker posted a consolidated profit after tax of Rs. 259.52 crore ($40.2 million) in Q2 of the last fiscal.

Sales during the period stood at Rs. 3,418.01 crores ($529.3 million) while sales in the year-ago quarter were Rs. 3,293.72 crore ($510.1 million). The figures are, however, not comparable due to the implementation of the Goods and Services Tax (GST) in July, the company said. Apollo Tyres chairman Onkar Kanwar commented: “While our revenues have grown, our margins have been under pressure due to the higher raw material prices, up nearly 15% versus Q2 last year.” With several capacity expansion projects currently underway for the company, Apollo is looking forward to healthy growth in the coming quarters, he said.